You created a revocable living trust in Florida. You named your beneficiaries, updated your accounts, and planned your estate with care. But here is the question most clients ask us next: what actually happens to that trust the moment I pass away?
Who steps in? What are they required to do? How long does the whole process take, and what can go wrong? Whether you are a grantor making sure your plan will work as intended or a family member who just became a successor trustee this guide gives you clear answers grounded in Florida law.
If you have not yet funded your trust, read that guide first. This one picks up where the funding process ends at the moment of death.
The Moment You Die: The Trust Becomes Irrevocable
The single most important legal fact to understand is this: at the moment the grantor dies, the revocable living trust locks permanently into place. It can no longer be amended, changed, or revoked by anyone.
During the grantor’s lifetime, a revocable trust is completely flexible assets can be added or removed, beneficiaries can be changed, and the entire document can be dissolved. Death changes all of that. Whatever the trust document says on the day the grantor passes is exactly what happens, exactly as written.
This stands in sharp contrast to what happens after someone dies in Florida without a trust a process that routes the estate through probate court, where a judge, attorneys, and a public filing system decide how and when assets are distributed. A properly drafted and funded trust removes the court from your family’s story entirely.
Does a Living Trust Avoid Probate in Florida?
Yes,and this is the core reason most Florida families choose a living trust over a will alone. Assets that are properly titled in a revocable trust do not go through Florida probate. They pass to named beneficiaries through the private trust administration process managed by the successor trustee.
Florida law sets probate attorney fees at roughly 3% of the gross estate value. On a $500,000 estate, that is $15,000 in required fees before a single dollar reaches your heirs. A fully funded living trust eliminates that cost and the 12-to-24-month probate timeline that goes with it.
The critical word is “properly titled.” Only assets that were actually transferred into the trust during the grantor’s lifetime avoid probate. Bank accounts still in your personal name, real estate never re-deeded to the trust, and investment accounts without a TOD designation those will still be pulled into the probate process. This is precisely why funding your trust matters as much as creating it.
For a side-by-side breakdown, see our guide on probate vs. trust administration in Miami.
The Successor Trustee Steps In Automatically
When the grantor dies, the successor trustee named in the trust document takes over immediately no court appointment, no petition, no waiting period. They simply present the trust document and a certified copy of the death certificate to banks and institutions, and authority transfers.
Most grantors serve as their own trustee during their lifetime and name a trusted adult child, spouse, sibling, or professional fiduciary as the successor. If the first named successor cannot serve, the alternate steps up. If no individual is available, the court can appoint one.
What If the Grantor and Trustee Were the Same Person?
This is the standard setup. The grantor controls the trust during their lifetime and named a successor to take over at death. The transition is seamless — no court involvement, no delay.
What If Co-Trustees Were Named?
When two co-trustees are named and one dies, the surviving co-trustee generally continues alone unless the trust requires them to appoint a replacement. Review your trust document carefully the language controls.
Successor Trustee Duties in Florida
Taking on the role of successor trustee is a legal responsibility, not just a family favor. Florida law imposes a fiduciary duty to act in the best interests of all beneficiaries at every step. Here is what that looks like in practice.
Step 1: Obtain Certified Death Certificates
Order at least 8 to 10 certified copies. Banks, financial institutions, real estate offices, the IRS, and Social Security each require an original. You will use more than you expect.
Step 2: Locate and Study the Trust Document
Read the trust carefully from beginning to end. Identify every beneficiary, note any conditions on distributions (age requirements, education milestones, discretionary standards), and list every specific bequest of personal property or real estate. The trust document is your legal roadmap deviating from it can make you personally liable.
Step 3: Secure and Inventory All Trust Assets
Take control of every asset held in the trust real estate, bank accounts, investment portfolios, business interests, and personal property. For assets that were left outside the trust by mistake, determine whether they must go through probate or can pass by beneficiary designation.
Step 4: Obtain a Federal Tax ID Number (EIN)
During the grantor’s lifetime, the trust used the grantor’s Social Security number for tax purposes. After death, the trust becomes a separate taxable entity and must have its own Employer Identification Number. You can apply through the IRS website in about 15 minutes at no charge.
Step 5: Open a Dedicated Trust Bank Account
Open a new bank account titled in the name of the trust to receive income, pay expenses, and hold assets during administration. Commingling trust funds with your personal accounts is a serious breach of fiduciary duty and can expose you to personal liability.
Step 6: Notify All Qualified Beneficiaries Within 60 Days
Florida Statutes § 736.05055 requires written notice to all qualified beneficiaries within 60 days of the grantor’s death. The notice must include the trustee’s name and contact information, a statement that the recipient is a qualified beneficiary, and information about their right to a copy of the trust and to request an accounting. Missing this deadline can open the door to legal challenges.
Step 7: Handle Creditors and Debts
Unlike probate, a Florida revocable trust does not require a formal creditor publication period. However, the trustee must still identify and pay the grantor’s valid debts — medical bills, funeral costs, final income taxes, and any outstanding obligations. Obtain tax clearance from the IRS before making final distributions. This step is also where Florida Medicaid estate recovery becomes relevant if the grantor received Medicaid benefits.
Step 8: File All Required Tax Returns
The successor trustee is responsible for: (1) the grantor’s final Form 1040 for the year of death; (2) a trust income tax return (Form 1041) for each year the trust remains open and earns income; and (3) a federal estate tax return (Form 706) if the gross estate exceeds the current exemption. Form 706 is due within nine months of death — extensions are available but must be requested in advance.
Step 9: Distribute Assets to Beneficiaries
Once debts, taxes, and administrative costs are settled, distribute the remaining assets to beneficiaries exactly as the trust instructs. Some trusts call for immediate distributions. Others hold assets in sub-trusts for minor children or beneficiaries who benefit from long-term management. Follow the trust’s instructions precisely.
Step 10: Close the Trust
Obtain signed receipts from all beneficiaries confirming they received their distributions, close the trust’s bank accounts, file any final tax returns, and retain records for at least seven years in case of future disputes or IRS inquiries.
Trust Beneficiary Rights in Florida
Many beneficiaries do not realize how many legal protections they have. Florida’s Trust Code Chapter 736, Florida Statutes establishes clear rights that every trustee must honor.
As a trust beneficiary in Florida, you are entitled to:
- Written notice of the trust’s existence within 60 days of the grantor’s death
- A complete copy of the trust document upon written request
- Annual accountings showing all assets, income, expenses, and distributions
- Information about trust investments and administration decisions at any time
- Petition the court if the trustee is mismanaging assets, self-dealing, or failing to communicate
- Seek removal and replacement of a trustee for cause
If you are a beneficiary and the trustee is not providing accountings, is unresponsive, or appears to be mishandling trust assets, you have real legal remedies. An estate planning attorney can help you enforce your rights often without full litigation.
What Happens to a Joint Trust When One Spouse Dies?
Many Florida couples create a single joint revocable trust together, naming each other as co-trustees and co-grantors. At the first spouse’s death, the trust does not simply continue unchanged. What happens depends on how the trust was structured.
The Trust Splits Into Two Shares
Share A: The Survivor’s Trust: Holds the surviving spouse’s half of the marital assets. Remains fully revocable the survivor can amend, add to, or revoke it at any time.
Share B: The Decedent’s Trust: Holds the deceased spouse’s share. Becomes immediately irrevocable. Typically structured as a bypass trust or credit shelter trust to preserve the deceased spouse’s federal estate tax exemption.
Why Structure It This Way?
The AB trust structure serves two purposes. First, it protects the deceased spouse’s choice of final beneficiaries the surviving spouse cannot later redirect those assets to a new partner or change who inherits. Second, for larger estates, it preserves the deceased spouse’s federal estate tax exemption, which can save a significant amount of tax for the next generation.
The Surviving Spouse’s Dual Role
After the first death, the surviving spouse typically becomes sole trustee of both shares managing the irrevocable Share B as a fiduciary for the named beneficiaries, while using Share A for their own living needs. This dual responsibility is significant, and most surviving spouses benefit from working with an attorney to navigate it properly.
How Long Does Trust Administration Take in Florida?
Trust administration moves significantly faster than probate but the timeline depends on the estate’s complexity.
- Simple estate, no disputes, no real estate sale, no business: 3 to 6 months
- Estate with real estate that must be sold: 6 to 12 months
- Business interests or complex investment portfolio: 12 to 18 months
- Disputes, litigation, or federal estate tax return required: 18 months or longer
- Florida probate, for comparison: 12 to 24 months or more
These timelines assume the trust was properly drafted and fully funded. Disputes over trust validity or improperly funded trusts that require parallel probate proceedings can extend administration significantly.
Can a Trust Be Contested in Florida?
Yes, and this surprises many families who assume a trust is immune from challenge. Florida law allows interested parties to contest a trust on specific grounds:
- Lack of mental capacity: The grantor did not understand the nature or effect of the trust at the time of signing.
- Undue influence: A third party pressured or manipulated the grantor into creating or changing the trust against their true wishes.
- Fraud or forgery: The trust or an amendment was created or altered through deception, or was not actually signed by the grantor.
- Improper execution: The trust was not properly signed and witnessed under Florida’s legal formalities.
Florida law gives interested parties a limited window to act generally within one year of receiving the trustee’s required statutory notice, or within two years of the grantor’s death, whichever comes first. If you believe a trust was improperly created or changed, contact an attorney immediately.
Common Trust Administration Mistakes in Florida
Even well-designed trusts run into problems during administration when the successor trustee makes avoidable errors. These are the mistakes we see most often:
- Distributing assets before paying debts. A trustee who distributes trust assets before settling valid debts can be held personally liable for those obligations.
- Missing the 60-day beneficiary notice deadline. Florida law is specific on this point, and missing the deadline can expose the trustee to legal challenge.
- Failing to obtain an EIN. Without a tax ID, the trustee cannot open a bank account in the trust’s name or file required returns.
- Commingling personal and trust funds. Every trust transaction must go through the dedicated trust account not the trustee’s personal checking.
- Missing the Form 706 deadline. The federal estate tax return is due nine months from the date of death. Extensions must be requested in advance.
- Not reading the trust carefully enough. Many trustees skim the document and miss critical instructions particularly sub-trust provisions for minors or beneficiaries with special needs.
What Happens to Assets That Were Not Placed in the Trust?
Not every asset in an estate passes through the trust. Some transfer by operation of law regardless of what the trust or will says.
- IRAs and 401(k) accounts: Pass directly to named beneficiaries never through the trust unless the trust is named as beneficiary.
- Life insurance policies: Pass directly to the policy’s named beneficiary.
- Jointly held property (JTWROS): Passes automatically to the surviving joint owner.
- TOD and POD accounts: Pass directly to the designated person outside of probate.
- Assets outside the trust with no beneficiary: Must go through Florida probate avoidable with proper planning.
The lesson is straightforward: avoiding probate in Florida requires both a properly drafted trust and complete funding of every significant asset into that trust. One without the other leaves your family exposed.
Medicaid Estate Recovery and Living Trusts in Florida
Florida’s Medicaid Estate Recovery Program (MERP) allows the state to seek reimbursement for Medicaid benefits paid during a recipient’s lifetime but only from assets that pass through probate. Assets held in a properly funded revocable living trust bypass probate and are generally shielded from MERP recovery.
This is one of the most significant practical benefits of trust-based planning for Florida seniors. For a complete breakdown of how this works and what assets are at risk, read our guide on Medicaid estate recovery in Florida.
Do You Need an Attorney for Trust Administration in Florida?
Florida does not require successor trustees to hire an attorney. The real question is not whether you legally must it is whether you can afford not to.
Trust administration involves federal tax filings with hard deadlines, fiduciary obligations to multiple beneficiaries, creditor settlement, potential real estate transactions, and the real risk of personal liability for mistakes. A trustee who distributes assets too early, misses a tax deadline, or fails to notify beneficiaries properly can be sued by the very people they were trying to help.
For straightforward estates one or two beneficiaries, no real estate, no disputes, modest assets experienced trustees sometimes manage the process with minimal professional help. For anything more complex, the cost of working with an attorney is almost always less than the cost of fixing a mistake.
Successor Trustee Administration Checklist
Use this checklist to track your progress through the trust administration process.
IMMEDIATELY AFTER DEATH
- Obtain 8 to 10 certified copies of the death certificate
- Locate the original trust document and read it in full
- Secure and inventory all trust assets
- Notify Social Security Administration and stop benefit payments
FIRST 30 DAYS
- Apply for a federal EIN for the trust at IRS.gov
- Open a dedicated trust bank account in the trust’s name
- Send written notice to all qualified beneficiaries (due within 60 days)
- Contact an estate planning attorney if the estate is complex
ONGOING ADMINISTRATION
- Pay all valid debts, medical bills, and final expenses
- File the grantor’s final Form 1040 for the year of death
- File Form 1041 (trust income tax return) if the trust earns income
- File Form 706 (federal estate tax return) if the estate exceeds the exemption due within 9 months
- Complete real estate transfers or sales as directed by the trust
- Provide annual accountings to all qualified beneficiaries
CLOSING THE TRUST
- Distribute assets to beneficiaries exactly as the trust instructs
- Obtain signed receipts from all beneficiaries confirming distributions
- Close trust bank accounts
- File any final tax returns
- Retain all trust records for at least seven years
Frequently Asked Questions
What happens to a living trust after death in Florida?
After the grantor dies, the revocable trust becomes irrevocable. The successor trustee takes over without any court involvement, inventories and secures all trust assets, notifies beneficiaries within 60 days, pays valid debts, files required tax returns, and distributes the estate to beneficiaries as the trust instructs entirely outside of probate court.
Does a trust avoid probate in Florida?
Yes. Assets properly titled in a revocable living trust bypass Florida’s probate process entirely. Only assets left outside the trust without a valid beneficiary designation are subject to probate. See our full guide on how to avoid probate in Florida.
What happens to a trust when the grantor dies?
The trust becomes irrevocable at the moment of the grantor’s death. The successor trustee named in the document steps in automatically, obtains the death certificate, applies for a new IRS EIN, provides required notices to beneficiaries, settles debts and taxes, and distributes assets per the trust’s exact instructions.
What are successor trustee duties in Florida?
Core duties include: obtaining the death certificate, securing and inventorying trust assets, getting a federal EIN, notifying qualified beneficiaries within 60 days under Florida § 736.05055, paying valid debts, filing the grantor’s final Form 1040 and any required trust income tax returns, and distributing assets to beneficiaries — all while maintaining complete fiduciary loyalty to the beneficiaries.
What happens to a joint trust when one spouse dies in Florida?
The trust typically divides into two portions: the Survivor’s Trust (revocable, managed by the surviving spouse) and the Decedent’s Trust (irrevocable, holding the deceased spouse’s share for the named beneficiaries). The surviving spouse becomes sole trustee of both portions.
How long does trust administration take in Florida?
Simple estates with no disputes or real estate sales can close in 3 to 6 months. Estates with real estate that must be sold typically take 6 to 12 months. Business interests, complex investments, family disputes, or the need to file a federal estate tax return can extend administration to 18 months or longer.
Do trust beneficiaries have rights in Florida?
Yes — significant ones. Under Florida’s Trust Code (Chapter 736), beneficiaries have the right to written notice within 60 days of the grantor’s death, a copy of the trust document, annual accountings, and the ability to petition the court if the trustee breaches their fiduciary duty.
Can a trust be contested in Florida?
Yes. A trust can be challenged on grounds of lack of capacity, undue influence, fraud, or improper execution. The window to contest is generally one year from receiving the trustee’s statutory notice, or two years from the date of death whichever comes first.
Does Florida Medicaid recover from trust assets after death?
Florida’s MERP can only recover from probate assets. A properly funded revocable living trust passes assets outside of probate, generally shielding them from Medicaid estate recovery. Read more in our guide on Medicaid estate recovery in Florida.
Do I need an attorney for trust administration in Florida?
Florida law does not require it, but it is strongly advisable. Successor trustees carry personal fiduciary liability, and errors missed tax deadlines, early distributions, improper creditor handling can expose them to lawsuits from beneficiaries. Professional guidance is almost always worth the cost.
Work With a Florida Trust Administration Attorney
Losing a loved one is hard enough. Navigating the legal and financial obligations of trust administration should not add to that burden. Whether you are a successor trustee unsure where to begin, a beneficiary with concerns about how the estate is being handled, or a grantor who wants to confirm your trust will work exactly as intended The Schoonover Law Firm, P.A. is here to guide you through every step.
If you signed a trust with another attorney and are not sure whether it is properly funded, Medicaid estate recovery in Florida and the other consequences of an improperly administered trust are real. A consultation is a straightforward appointment that can catch problems before they become costly for your family.
Call (305) 299-7496 or email info@estateplanningattorney.us to schedule a free initial consultation. Phone and Zoom appointments are available Monday through Sunday, 8:00 AM to 9:00 PM.
The Schoonover Law Firm, P.A. | 6303 Waterford District Drive, Suite 400, Miami, FL 33126 | Florida Bar #124081
